H.J.R. 3

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RESOLUTION RESTRICTING PROPERTY TAX VALUATION
2 ON PRIMARY RESIDENCES OF THE ELDERLY
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David M. Jones
6 A JOINT RESOLUTION OF THE LEGISLATURE PROPOSING TO AMEND THE UTAH
7 CONSTITUTION; AMENDING THE TAX ARTICLE TO RESTRICT THE PROPERTY
8 TAX VALUATION ON THE PRIMARY RESIDENCE OF THE ELDERLY; AND
9 PROVIDING AN EFFECTIVE DATE.
10 This resolution proposes to change the Utah Constitution as follows:
11 AMENDS:
12 ARTICLE XIII, SECTION 2
13 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each of
14 the two houses voting in favor thereof:
15 Section 1. It is proposed to amend Utah Constitution Article XIII, Section 2, to read:
16 Article XIII, Section 2. [Tangible property to be taxed -- Value ascertained --
17 Exemptions -- Remittance or abatement of taxes of poor -- Remittance or abatement of
18 property taxes on primary residences of the elderly -- Intangible property -- Legislature to
19 provide annual tax for state.]
20 (1) All tangible property in the state, not exempt under the laws of the United States, or
21 under this Constitution, shall be taxed at a uniform and equal rate in proportion to its value, to be
22 ascertained as provided by law.
23 (2) The following are property tax exemptions:
24 (a) the property of the state, school districts, and public libraries;
25 (b) the property of counties, cities, towns, special districts, and all other political
26 subdivisions of the state, except that to the extent and in the manner provided by the Legislature
27 the property of a county, city, town, special district, or other political subdivision of the state

1 located outside of its geographic boundaries as defined by law may be subject to the ad valorem
2 property tax;
3 (c) property owned by a nonprofit entity which is used exclusively for religious, charitable,
4 or educational purposes;
5 (d) places of burial not held or used for private or corporate benefit; and
6 (e) farm equipment and farm machinery as defined by statute. This exemption shall be
7 implemented over a period of time as provided by statute.
8 (3) Tangible personal property present in Utah on January 1, held for sale or processing
9 and which is shipped to final destination outside this state within twelve months may be
10 considered by law to have acquired no situs in Utah for purposes of ad valorem property taxation
11 and may be exempted by law from such taxation, whether manufactured, processed or produced,
12 or otherwise originating within or without the state.
13 (4) Tangible personal property present in Utah on January 1, held for sale in the ordinary
14 course of business and which constitutes the inventory of any retailer, or wholesaler or
15 manufacturer or farmer, or livestock raiser may be deemed for purposes of ad valorem property
16 taxation to be exempted.
17 (5) Water rights, ditches, canals, reservoirs, power plants, pumping plants, transmission
18 lines, pipes and flumes owned and used by individuals or corporations for irrigating land within
19 the state owned by such individuals or corporations, or the individual members thereof, shall be
20 exempted from taxation to the extent that they shall be owned and used for such purposes.
21 (6) Power plants, power transmission lines and other property used for generating and
22 delivering electrical power, a portion of which is used for furnishing power for pumping water for
23 irrigation purposes on lands in the state of Utah, may be exempted from taxation to the extent that
24 such property is used for such purposes. These exemptions shall accrue to the benefit of the users
25 of water so pumped under such regulations as the Legislature may prescribe.
26 (7) The taxes of the poor may be remitted or abated at such times and in such manner as
27 may be provided by law.
28 (8) The Legislature may provide by law for the exemption from taxation: of not to exceed
29 45% of the fair market value of residential property as defined by law; and all household
30 furnishings, furniture, and equipment used exclusively by the owner thereof at his place of abode
31 in maintaining a home for himself and family.

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1 (9) Property owned by disabled persons who were disabled in the line of duty during any
2 war, international conflict, or military training in the military service of the United States or of the
3 state of Utah and by the unmarried surviving spouses and minor orphans of such disabled persons
4 or of persons who during any war, international conflict, or military training in the military service
5 of the United States or the state of Utah were killed in action or died in the line of duty as a result
6 of such service may be exempted as the Legislature may provide.
7 (10) Intangible property may be exempted from taxation as property or it may be taxed as
8 property in such manner and to such extent as the Legislature may provide, but if taxed as property
9 the income therefrom shall not also be taxed. Provided that if intangible property is taxed as
10 property the rate thereof shall not exceed five mills on each dollar of valuation.
11 (11) The Legislature shall provide by law for an annual tax sufficient, with other sources
12 of revenue, to defray the estimated ordinary expenses of the state for each fiscal year. For the
13 purpose of paying the state debt, if any there be, the Legislature shall provide for levying a tax
14 annually, sufficient to pay the annual interest and to pay the principal of such debt, within twenty
15 years from the final passage of the law creating the debt.
16 (12) The property tax valuation on an elderly person's primary residence shall be valued
17 at the time of the elderly person's retirement as provided by statute. The valuation shall not
18 increase from the date of retirement for the period during which the elderly person resides in the
19 primary residence as provided by statute.
20 Section 2. Submittal to electors.
21 The lieutenant governor is directed to submit this proposed amendment to the electors of
22 the state of Utah at the next general election in the manner provided by law.
23 Section 3. Effective date.
24 If approved by the electors of the state, the amendment proposed by this joint resolution
25 shall take effect on January 1, 1999.


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Legislative Review Note
as of 12-18-96 8:12 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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